Build, Buy or Partner? CFOs Write Their Own Playbook

Turning cost centers into growth engines is the name of the game for CFOs today.

The financial landscape is changing rapidly. Traditional payment processes, characterized by manual workflows and delayed reconciliations, no longer aligned with the demands of an increasingly digitized and globalized business ecosystem. Real time data has become a critical driver for decision making, and businesses are under intense pressure to reduce costs while improving cash flow visibility.

For CFOs, these challenges are intensifying as the the role is evolving to a strategic advisor. Financial magnates are no longer mere guardians of budgets; they are increasing now orchestras in digital transformation, tasked with delivering systems aligned with broader business objectives.

As B2B business transactions increasingly demand digitized, real-time data, businesses are under pressure to adaptand CFOs find themselves at a crossroads: should they build an in-house solution, buy a ready-made one, or find the right partner?

Each approach comes with distinct advantages and challenges, and the choice often depends on a company’s size, resources and goals.

Read more: Silo Busting: Why Businesses Need to Fix the Past to Embrace the Future

The Evolving Role of CFOs

PYMNTS Intelligence in 2024 Certainty Project in “How the C-Suite Fights Uncertainty With New Workflows and Analytics Tools” found that by balancing adding new and more streamlined processes and bringing in external partners, companies with uncertainty were able to improve their resilience.

One of the most effective ways for CFOs to transform cost centers is to use technology. Automation, artificial intelligence (AI) and cloud-based platforms are changing manual, resource-intensive processes. But the road to modernization is not a one-size-fits-all journey, and comes with the triple option of creating custom solutions in-house, buying off-the-shelf platforms or partnering with external provider.

For companies with strong IT resources and special needs, building an in-house solution can provide unparalleled customization and control. In-house development enables CFOs to design systems tailored precisely to their unique workflows, ensuring seamless integration with existing financial tools and processes.

However, this approach requires a significant initial investment – not only financially but also in time and talent. At the same time, it requires a long-term commitment to maintenance and upgrades, which can burden IT departments.

Read more: Enterprise AI Emerges as a Force in Business Process Automation

Purchase or Partner?

For CFOs looking to implement rapid changes without development overhead, procurement can be an attractive option. However, the trade-off is a potential lack of customization. Businesses may need to adjust their workflows to match the software’s capabilities, which creates friction during implementation.

The partner model, where businesses collaborate with FinTechs or specialized service providers, offers a hybrid solution. By using external expertise, CFOs can access the necessary technology while retaining some form of customization. Partnerships also enable businesses to share the burden of innovation, reducing risk and speeding up deployment.

As businesses grapple with the “Buy, build or partner?” dilemma, many recognize that partnership is the best way to stay competitive, Enhance Payment Solutions Chief Revenue Officer Seth Goodman writes in the new PYMNTS eBook, “The New Value Equation: 11 Financial Services Leaders Share Their Vision for 2025.”

However, success depends on choosing a partner whose goals and capabilities align with your own company’s strategic vision.

“Automatics, automatics, automatics,” Lorenzo Soriano de Teresasenior vice president, merchant services at American Expresstold PYMNTS in a interviews Posted on August 27. “The right automation solution, or the right partner, can help businesses move past their current payment concerns to see tangible benefits.”

PYMNTS’ fourth quarter 2024 eBook“Moving From ‘No, Because …’ to ‘Yes, And …,’” examines two transformative questions for executives: “How do we move from a ‘no, because . ..’ thinking to a ‘yes, and …’ thinking? ” and “How often do we ask, ‘What if?’” These questions set the stage for industry leaders to share how they are fostering innovation, breaking down silos and redefining possibilities.

Regardless of the chosen approach, CFOs are uniquely positioned to drive alignment between financial goals and technology strategies. Their deep understanding of cash flow dynamics and operational costs helps make them invaluable in evaluating the ROI (return on investment) of potential solutions.

By aligning the adoption of new payment methods with broader business objectives, companies can ensure that change delivers tangible benefits and supports long-term growth. For example, PYMNTS Intelligence found that nearly three in four companies (73%) said that AP automation improves their cash flow.